Aflac Incorporated reported its third quarter results.

Total revenues were $2.9 billion in the third quarter of 2024, compared with $5.0 billion in the third quarter of 2023. Net losses were $93 million, or losses of $0.17 per diluted share, compared with earnings of $1.6 billion, or $2.64 per diluted share a year ago, primarily due to increased foreign exchange-related losses from yen strengthening by 12.9% during the quarter.

Net losses in the third quarter of 2024 included net investment losses of $1.4 billion, or $2.51 per diluted share, compared with net investment gains of $423 million, or $0.71 per diluted share a year ago. These net investment losses were driven by net losses of $1.4 billion on certain derivatives and foreign currency activities; net gains from sales and redemptions of $105 million; a $13 million gain from an increase in the fair value of equity securities; an $86 million increase in credit losses; and a $55 million impairment due to the anticipated sale of investments with unrealized losses.

Adjusted earnings* in the third quarter were $1.2 billion, compared with $1.1 billion in the third quarter of 2023, reflecting an increase of 10.6%. Adjusted earnings per diluted share* increased 17.4% to $2.16 in the quarter. Variable investment income ran $27 million below the company's long-term return expectations. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.03.

The average yen/dollar exchange rate in the third quarter of 2024 was 147.95, or 2.0% weaker than the average rate of 144.97 in the third quarter of 2023. For the first nine months, the average exchange rate was 150.60, or 8.1% weaker than the rate of 138.38 a year ago.

Shareholders' equity was $24.8 billion, or $44.60 per share, at September 30, 2024, compared with $22.7 billion, or $38.63 per share, at September 30, 2023. Shareholders' equity at the end of the third quarter included a cumulative decrease of $67 million for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $866 million at September 30, 2023 and a net unrealized gain on investment securities and derivatives of $537 million, compared with a net unrealized loss of $427 million at September 30, 2023. Shareholders' equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.1 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at September 30, 2023. The annualized return on average shareholders' equity in the third quarter was (1.5)%.

For the first nine months of 2024, total revenues were down 9.4% to $13.5 billion, compared with $14.9 billion in the first nine months of 2023. Net earnings were $3.5 billion, or $6.23 per diluted share, compared with $4.4 billion, or $7.28 per diluted share, for the first nine months of 2023. Adjusted earnings for the first nine months of 2024 were $3.2 billion, or $5.64 per diluted share, compared with $3.0 billion, or $4.97 per diluted share, in 2023. Excluding the negative impact of $0.17 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 16.9% to $5.81for the first nine months of 2024.

Shareholders' equity excluding AOCI (or adjusted book value*) was $28.5 billion, or $51.21 per share at September 30, 2024, compared with $28.4 billion, or $48.44 per share, at September 30, 2023. The annualized adjusted return on equity excluding foreign currency impact* in the third quarter was 17.0%.